Effects of internationalizing the debt

What is "internationalizing" the debt and how is it relevant to today's economy?

How does internationalizing the debt reduce crowding out?

What are the costs of internationalizing the debt?

Solution Preview

Internationalizing a debt occurs when foreign investment is used to fund a nation's debt, as is currently occurring in the US. Currently foreign investors own about a quarter of the US national debt, and this rate is steadily increasing.